Quad Graphics (NYSE:QUAD) Sees Strong Trading Volume - Still a Buy?

Key Points

• Analysts are broadly bullish: Quad Graphics has a consensus “Buy” rating and an average price target of $12, with Benchmark and Rosenblatt Securities raising their targets to $13.
• The company exceeded quarterly expectations, reporting $0.24 in earnings per share versus the $0.20 consensus and revenue of $577.5 million versus $545.15 million expected.
• Quad Graphics declared a quarterly dividend of $0.10, equivalent to $0.40 annually and a 4.0% yield; however, its debt-to-equity ratio is elevated at 2.81 and its current ratio is below 1.0.

Quad Graphics, Inc (NYSE:QUAD - Get Free Report) shares saw strong trading volume on Friday . 628,628 shares were traded during trading, an increase of 180% from the previous session's volume of 224,117 shares.The stock last traded at $9.8590 and had previously closed at $9.81.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on QUAD. Benchmark upped their target price on Quad Graphics from $10.00 to $13.00 and gave the company a "buy" rating in a report on Thursday, July 30th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Quad Graphics in a research note on Friday, July 24th. Zacks Research upgraded shares of Quad Graphics from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 3rd. Finally, Rosenblatt Securities increased their price objective on shares of Quad Graphics from $9.80 to $13.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, Quad Graphics presently has a consensus rating of "Buy" and an average price target of $12.00.

Quad Graphics Trading Up 1.2%

The company has a debt-to-equity ratio of 2.81, a quick ratio of 0.60 and a current ratio of 0.87. The business has a fifty day simple moving average of $8.57 and a 200 day simple moving average of $7.53. The stock has a market cap of $511.01 million, a price-to-earnings ratio of 15.76 and a beta of 1.11.

Quad Graphics (NYSE:QUAD - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The business services provider reported $0.24 earnings per share for the quarter, topping analysts' consensus estimates of $0.20 by $0.04. The company had revenue of $577.50 million during the quarter, compared to analysts' expectations of $545.15 million. Quad Graphics had a return on equity of 47.90% and a net margin of 1.31%. As a group, equities analysts anticipate that Quad Graphics, Inc will post 1.27 EPS for the current year.

Quad Graphics Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Shareholders of record on Monday, August 17th will be issued a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a yield of 4.0%. The ex-dividend date is Monday, August 17th. Quad Graphics's dividend payout ratio is 63.49%.

Institutional Investors Weigh In On Quad Graphics

A number of hedge funds and other institutional investors have recently modified their holdings of QUAD. Hillsdale Investment Management Inc. lifted its position in Quad Graphics by 192.3% during the fourth quarter. Hillsdale Investment Management Inc. now owns 152,297 shares of the business services provider's stock worth $955,000 after buying an additional 100,197 shares during the period. Inspire Investing LLC purchased a new stake in Quad Graphics in the 1st quarter valued at about $1,672,000. Ritholtz Wealth Management grew its holdings in Quad Graphics by 50.4% in the 1st quarter. Ritholtz Wealth Management now owns 267,064 shares of the business services provider's stock valued at $1,765,000 after buying an additional 89,505 shares during the period. Miller Value Partners LLC increased its stake in shares of Quad Graphics by 4.4% during the 4th quarter. Miller Value Partners LLC now owns 2,737,890 shares of the business services provider's stock valued at $17,167,000 after acquiring an additional 114,415 shares during the last quarter. Finally, DGS Capital Management LLC purchased a new position in shares of Quad Graphics during the 1st quarter worth about $71,000. 39.52% of the stock is currently owned by hedge funds and other institutional investors.

About Quad Graphics

Quad Graphics, Inc NYSE: QUAD is a global provider of print and related marketing services, serving a diverse range of clients in the publishing, retail, e-commerce and consumer packaged goods sectors. The company offers end-to-end solutions that span traditional print production, supply chain management and digital marketing support. Quad Graphics leverages a network of production facilities and distribution centers to deliver high-quality printed materials and integrated marketing programs that help clients reach their target audiences across multiple channels.

The company's core offerings include magazine and catalog printing, direct mail, retail inserts, shopper marketing materials, custom packaging and point-of-sale displays.

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